Aramco Digital, the digital and technology subsidiary of Aramco, Saudi Arabia’s state-owned petroleum and natural gas company, has recently entered into a partnership with Groc, an Artificial Intelligence (AI) Inference company, to set up one of the world’s largest inferencing data centers in Saudi Arabia. The announcement was made on the sidelines of the Global AI Summit (GAIN Summit), which concluded in Riyadh recently.
The move follows a previous signing of a Memorandum of Understanding (MoU) during LEAP, between the two. In a press release, Groc said, “This strategic collaboration marks a significant step forward in advancing the Kingdom’s digital transformation initiatives and solidifying its position as a global leader in AI and cloud computing.” It further said, “This ground-breaking inferencing data center will use Groq® LPU™ AI inference technology, advanced AI processors designed specifically for massive-scale inference workloads that deliver speed and efficiency.”
The partnership aims to leverage Groc’s cutting-edge AI and machine-learning (ML) infrastructure, to power data processing and analytics in an unprecedented manner. An AI inference data center relies heavily on AI models to produce predictions and conclusions, a necessity in the age of Big Data. These data centers will become critical in a world where high-performance computing is fast becoming de rigueur.
Tareq Amin, CEO of Aramco Digital, stated, “With the support of the Kingdom’s leadership, we are proud to partner with Groq to develop a world-leading inferencing data center in Saudi Arabia. This initiative not only aims to create the largest facility of its kind but also ensures seamless access to advanced AI computing power for everyone, offered through our digital marketplace, nawat, in a flexible ‘as-a-Service’ model. Our collaboration with Groq aligns directly with Vision 2030, promoting the localization of advanced technologies, driving innovation, enhancing sustainability, and reinforcing digital excellence within the Kingdom.”
“The Groq partnership with Aramco Digital demonstrates our shared dedication to pushing the boundaries of AI. Integrating with Aramco Digital’s marketplace nawat will generate unparalleled processing power and scalability accessible to anyone, making it a key contributor to the global AI ecosystem,” said Jonathan Ross, CEO and Founder of Groq. “Securing our first and largest local presence within Saudi Arabia ensures Groq will remain at the center of the leading AI hub in the region. Saudi Arabia’s visionary leadership and strategic location offer an ideal platform for Groq to achieve its goal of meeting half of the world’s AI inference needs.”
Saudi Arabia is the fastest growing data center market in the Middle East, and its economy, as well as public utilities are fast adopting new and emerging technologies in a bid to undergo a rapid digital transformation. Saudi Arabia has set itself ambitious goals in this regard under Saudi Vision 2030, which aims to create a technology driven, business-friendly economy that not only empowers the citizens of the Kingdom of Saudi Arabia, but also attracts foreign businesses and investments. Saudi Arabia also has a Cloud First policy which will fuel the growth of Cloud in the Middle Eastern Kingdom. The policy launched in 2020 mandates, “For any new IT investment, civilian government entities should consider Cloud solutions as opposed to internal / traditional solutions.”
According to Mordor Intelligence, the Big Data and Artificial Intelligence Market size in Saudi Arabia is estimated at US$ 0.38 billion in 2024, and is expected to reach US$ 2.19 billion by 2029, growing at a Compounded Average Growth Rate (CAGR) of 34.24% during the forecast period (2024-2029).
